Charitable Remainder Annuity Trusts
Gift Example
The example below is based on a factor that changes monthly. Request for a personal gift illustration based on the latest rates.
You are holding appreciated stock valued at $100,000 from which you receive a $1,000 dividend annually. You would like to reinvest for more income; however, you will owe a capital-gains tax on $90,000 of profit if you do. Instead, you contribute the $100,000 to a charitable annuity trust paying you and your spouse (ages 70 and 68) $5,000 annually.
| Amount contributed |
$100,000 |
| Cost basis |
$90,000 |
Annual payment
|
$5,000 |
| Charitable deduction |
$35,037 |
| Tax savings @ 33% |
$11,562 |
Click here to calculate your charitable remainder annuity trust benefits
Note: The annuity trust is not the only gift plan that increases your cash flow. Compare its benefits to the unitrust and the gift annuity. |
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